There may betimes when your organization needs the expertise of an outside vendor or consultant. Finding the right one isn't always easy.A Request for Proposal (RFP) is the appropriate competitive selection process for purchasing goods or services when price is not the most important criteria to be considered for awarding a contract.

Writing an RFP is easier than it sounds - and a lot easier than cleaning up later because thevendor you hired was a bad fit.

When writing anRFP, just remember "garbage out, garbage back." The vendors who will beresponding need to have a clear understanding of your organization and its needs.

A well-written RFP will clarify yourobjectives and the scope of the services you are seeking. It will also providea structured format in which the vendor should present its capabilities, costsand expectations. RFP templates are available on the Internet that might helpyou.

Writing the RFP

The first stepin creating an RFP is defining the project and your specific needs. Whatexactly do you want a vendor to do? How? When? Where?

RFPs typicallyhave the following sections, though these can change somewhat depending on thenature of your project:

1. Introduction.Explain to potential bidders in broadterms why you are putting out an RFP and what you hope to accomplish by hiringone of them. You may also summarize key points from other sections, such aswhen their responses are due and when the project would start.
2. Background information.This sectionincludes information about your organization and the history of the current project, leading up to the need for the RFP.
3. Requirements. This is a detailed explanation of whatyou want the vendor to do, and a list of the information you expect to receivefrom the candidates.

It is the mostimportant section and usually requires the most time - both for you to writeand for the vendor's response.

1. Specification of the product. Clearly explain what is required for the space chair. This will be very detailed as we need a product that is suitable for installation in a space craft.
2. Structure of the response.Present thestructure of how you would like to receive the response. If the project iscomplex or highly technical, you can break out the requirements into bulletpoints to which the vendors are expected to respond.

A typical formatfor the response from the vendor might include:

1. Executive summary (high-level overviewwith key points)
2. Vendor company background information
3. Proposed services or deliverables (howthe vendor will meet the RFP requirements)
4. Pricing
5. References (previous customers)

Awarding the Contract

1. Selection criteria. Tell vendors how the winningbidder will be selected. This gives you a chance to highlight your priorities, your must-haves and nice-to-haves, to guide vendors' responses.
2. Timelines.Specify the deadline to receive theirresponses, the date you will announce the winning bidder, and the date theproject will begin.

Keep in mindthat the longer your RFP is, and the more detailed response required ofbidders, the more time you need to allow them to make a thorough response.

1. EvaluatingVendors. The evaluationprocess actually starts before you receive any RFP responses - that is, when youdecide who the recipients of the RFP should be. Little homework to get somegood prospects.

You may alreadyknow who the vendors of interest are. If not, try the relevant professionalorganizations, ask trusted colleagues and other vendors who aren't incompetition, or even online search.

Get enoughinformation to rule out vendors that are clearly not a good fit. But limitrecipients so you don't end up with reams of replies that create a mass ofdisappointed parties who never stood a chance. On the other hand, it's good tohave diversity. Send it to some large national vendors and to some smallregional ones, for example.

Don't choose avendor based on price alone. After you read the RFP responses, narrow the listdown to the best ones and interview those.

Face-to-faceinterviews provide the most information. What is the chemistry between you? Howwell do they seem to listen to your concerns? Check references. Ask pointedquestions. They may be reluctant to say anything negative, but what theydon'tsay can be just as useful.

Finally, onceyou choose a vendor, make a good contract that spells out all the particularsand protects both your interests and those of your vendor. Your RFP and thevendor's response to it form the framework of your contract. If the RFP is wellwritten, the contract negotiation process should go more smoothly.

QUESTIONS:

1. Your company is designing a brand new 2.0 space craft for Jeff Bezos. You do not have the capacity to build the specialized "space chair" that is required. You need to find a supplier that is capable of building one for you to install in the finished space craft.

The product must be ready for installation in 36 months!

This chair will be used for civilians to travel to space, it must be safe and it must be durable enough to last for 1 year before replacement is required. This contract is worth millions of dollars for your company and your job is one the line, so it is critical that the specifications are very detailed. You only have 1 shot to get this right!

2. Research suppliers that you think might be capable of building a space chair.

3. Make a Request for Proposal using the instructions above.